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a. Calculate the real risk free interest rate 3 mth U.S. Treasury Bill rate % (risk free) 30yr U.S.Treasury int. rate % 30 yr corp
| a. Calculate the real risk free interest rate | |||||||||||
| 3 mth U.S. Treasury Bill rate % (risk free) | 30yr U.S.Treasury int. rate % | 30 yr corp AAA bonds int. rate | Inflation premium | Liquidity risk premium | Nominal int. rate = | real | risk-free | int. | |||
| 20th March 2022 | 0.51% | 2.50% | 3.00% | 8.00% | 0.02% | + | inflation | premium | |||
| 14th April 2022 | 0.72% | 2.90% | 3.72% | 8.00% | 0.02% | + | Default-risk | premium | |||
| + | Maturity-risk | premium | |||||||||
| b. What can you conclude regarding the yield curve direction ? | + | Liquidity-risk | premium | ||||||||
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Personal Finance For Musicians
Authors: Bobby Borg
1st Edition
1538163306, 978-1538163306
